Bob Diamond, the new chief executive of British bank Barclays, leaves Portcullis House in central London, on January 11, 2011. Bob Diamond, the new chief executive of British bank Barclays, acknowledged the need for a "safer and sounder" bonus system amid increasing public anger over excessive pay for bankers. Addressing a cross-party panel of lawmakers, Diamond however insisted that it was important to reward staff in addition to their annual salaries. AFP PHOTO / BEN STANSALL
Bob Diamond, the new chief executive of British bank Barclays, leaves Portcullis House in central London, on January 11, 2011. Bob Diamond, the new chief executive of British bank Barclays, acknowledgShow more

UK bankers still do not grasp the error of their indifference



The unapologetic tone taken this week by Bob Diamond, the chief executive of Barclays, in testimony before a panel of MPs underscores an attitude that has upset the public

You don't get to the top of your trade by being timid or apologetic.

And so it was with Bob Diamond, the Barclays bank chief grilled by the British cross-party Treasury Select Committee at Westminster. The country's best paid banker, with an annual salary of £1.35 million (Dh7.75m) plus benefits, was taken to task on Tuesday over a range of financial matters, but it was bank bonuses that everyone got excited about.

No one can forget how the global economic downturn began. No one, that is, apart from the bankers, it seems. They are expected to pay themselves some £7 billion in bonuses in the coming weeks, slightly lower than last year but in general opinion, much, much more than they deserve.

It was time for banks to stop saying sorry for the financial crisis, said Mr Diamond. The debate had to move on. "There seems to be a period of remorse and apology for banks," he said. "I think the period needs to be over. We need banks willing to take risks, working with the private sector in the UK … so we can create jobs," he told the panel in two and a half hours of questioning.

Mr Diamond himself is on track for an £8m payout for his performance last year, after forgoing his bonus for the past two years. Asked by John Mann, a Labour member of the panel, if he would forgo his bonus again this year, he stonewalled. "I've not been awarded a bonus yet. I'll make that decision with my family, as I did last year," said Mr Diamond, who became the Barclays chief executive at the start of the year after running its investment arm for 14 years.

Big bankers' payout has become a highly toxic issue in Westminster, with ministers acutely aware of how it could further fuel public resentment over coalition cuts and the tripling of university fees. True enough, public fury flared over weekend reports that Stephen Hester, the boss of majority state-owned Royal Bank of Scotland, is in line for a £2.5m bonus. Moreover, the media reports came just a few days before the Financial Services Authority fined RBS and its subsidiary Natwest £2.8m for shoddy treatment of customer complaints.

But those expecting the banks to run scared of government threats of consequences for high payouts were always likely to be disappointed. For all its rhetoric, the government is really quite powerless to control the City, where the law of the free market rules. The government has increased the top rate of income tax to 50 per cent, and its new bonus levy will raise about £3bn. But other than these measures, David Cameron, the prime minister, would not "micromanage" the banks and has backed away from any further interference.

With stronger restraints, the banks might just be pushed to carry out their oft-repeated threat of relocating to where the profits are: to financial centres such as Singapore or Hong Kong.

It is something London cannot afford to happen. The industry contributed £53.4bn of taxes during the 2009-2010 financial year. The goose that lays the golden egg must not be strangled.

It's the same market principle that applies to bank employees. One of the main reasons they are paid such big bonuses is that the other banks do the same. Pay less than the others and your top bankers could leave for a better deal.

Mr Diamond said he was committed to be "responsible and to provide any restraint" he could on pay but repeatedly added that he had to compete against rivals such as Credit Suisse and Goldman Sachs. The latter alone is expected to have set aside US$15bn (Dh55.09bn) in pay and bonuses for past year for its 35,000 staff.

Competition or not, Mr Diamond's seemingly blithe comment asking banks to stop apologising has done little to damp down public anger. An industry that caused the crisis that engulfed the world economy, causing millions to suffer, should perhaps show a bit more contrition and humility.

"I am not convinced that the banks have fully grasped the scale of the crisis," Andrew Tyrie, the chairman of the select committee, told the Sky commentator Jeff Randall.

"People find it unacceptable that the institutions which helped create the crisis are now paying out such large bonuses, and I didn't feel that coming across strongly enough when, for example, Bob Diamond said the time for remorse is over."

Quite.

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
UAE SQUAD

UAE team
1. Chris Jones-Griffiths 2. Gio Fourie 3. Craig Nutt 4. Daniel Perry 5. Isaac Porter 6. Matt Mills 7. Hamish Anderson 8. Jaen Botes 9. Barry Dwyer 10. Luke Stevenson (captain) 11. Sean Carey 12. Andrew Powell 13. Saki Naisau 14. Thinus Steyn 15. Matt Richards

Replacements
16. Lukas Waddington 17. Murray Reason 18. Ahmed Moosa 19. Stephen Ferguson 20. Sean Stevens 21. Ed Armitage 22. Kini Natuna 23. Majid Al Balooshi

Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
 
 
 
 
 
 
 
The Bio

Name: Lynn Davison

Profession: History teacher at Al Yasmina Academy, Abu Dhabi

Children: She has one son, Casey, 28

Hometown: Pontefract, West Yorkshire in the UK

Favourite book: The Alchemist by Paulo Coelho

Favourite Author: CJ Sansom

Favourite holiday destination: Bali

Favourite food: A Sunday roast

Various Artists 
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
​​​​​​​

Company Profile

Company name: Big Farm Brothers

Started: September 2020

Founders: Vishal Mahajan and Navneet Kaur

Based: Dubai Investment Park 1

Industry: food and agriculture

Initial investment: $205,000

Current staff: eight to 10

Future plan: to expand to other GCC markets

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
%3Cp%3EBy%202030%2C%20Abu%20Dhabi%20aims%20to%20achieve%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2039.3%20million%20visitors%2C%3C%2Fstrong%3E%20nearly%2064%25%20up%20from%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20Dh90%20billion%20contribution%20to%20GDP%2C%3C%2Fstrong%3E%20about%2084%25%20more%20than%20Dh49%20billion%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20178%2C000%20new%20jobs%2C%3C%2Fstrong%3E%20bringing%20the%20total%20to%20about%20366%2C000%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2052%2C000%20hotel%20rooms%2C%3C%2Fstrong%3E%20up%2053%25%20from%2034%2C000%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%207.2%20million%20international%20visitors%2C%3C%2Fstrong%3E%20almost%2090%25%20higher%20compared%20to%202023's%203.8%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%203.9%20international%20overnight%20hotel%20stays%2C%3C%2Fstrong%3E%2022%25%20more%20from%203.2%20nights%20in%202023%3C%2Fp%3E%0A